BY PAUL BARTLETT, CONTRIBUTING EDITOR ShipBuilding
I C E
C L A S S
TA N K E R S
MiDDLE EAST YARDS BANK ON OFFShORE BUSiNESS Competitive market pushes Gulf repairers to diversify
N
ew shipyards and more repair capacity will inevitably mean tough times ahead for Middle East shipyards. But repair facilities in the Gulf are turning increasingly to the buoyant offshore sector to offset a decline in traditional repair revenues, while diversification into other high-tech floating assets is also a growing contributor to earnings. Two of the region’s leading yards are expecting more offshore work in the months ahead. At a recent press briefing, Drydocks World Dubai (DDW) Chairman Khamis Juma Buamim, for example, said he expects the offshore business will account for 60% of the shipyard’s revenue in five years’ time. Currently, the offshore work accounts for about 33% of the shipyard’s business. ASRY CEO Chris Potter, meanwhile, expects earnings from offshore business to account for more than 50% this year or next of the Bahrain ship repairer’s business as the value of rig-upgrade projects for regional drilling companies continues to rise. Both yards are investing significant resources in beefing up their offshore capability. DDW plans to expand its newbuild area by moving its floating dock to Dubai Maritime City. A new quay adjacent to the area will boost offshore construction and rig upgrade capacity while several lay-by berths will be avail-
able for jack-ups at the end of the quay. Besides its usual mix of commercial repairs, DDW has various other innovative projects in progress. The company recently announced plans to work with Asian cruise consultant Oceanic Group to prepare the iconic QE2 for a voyage to Asia where it will undergo a complete refurbishment, probably in China, to begin a new life as a five-star hotel in the heart of an as-yet unnamed Asian city, possibly Hong Kong, Singapore, Shanghai or Seoul. The liner, delivered in 1969, completed 806 trans-Atlantic crossings between Southampton, UK and New York, NY, during almost 40 years of service for Cunard. The QE2 carried 2.5 million passengers and sailed nearly six million miles before its retirement in Dubai in November 2008. The QE2 has been laid up there, with a skeleton crew, ever since. Now, its seaworthiness and classification checks are being carried out at DDW before the QE2 sails for Asia. Whether or not the majestic liner will make the voyage under its own steam so far remains unclear. TWO MODULAR CAPTURE VESSELS FOR GULF OF MEXICO Other projects underway at DDW include the conversion of two 120,000 dwt Aframax tankers, Eagle Louisiana and Eagle
Dubai Drydocks World is assisting the Oceanic Group in preparing the majestic old liner QE2 for its voyage to Asia, where it will be refurbished for its new life as a five-star hotel
18 MARINE LOG MARCH 2013
www.marinelog.com